Prologis Buys Coney Island Industrial Development Site for $51M
By Mark Hallum February 2, 2024 12:25 pm
reprints
National Grid has finally offloaded an undeveloped 16-acre plot on the north side of Coney Island Creek in Brooklyn, after being on the market since December 2020.
Prologis (PLD) purchased 2731 West 12th Street for $51 million, according to property records made public Friday, paving the way for an industrial facility under the lot’s current M3-1 zoning.
The deed is still under the name of the old Brooklyn Union Gas Company, which became KeySpan before it was acquired by National Grid. A gas facility was in use at the site from 1908 until 1966, and has since been demolished, according to The Real Deal, which reported the property hitting the market in 2020.
The property comes with 1.5 million buildable square feet, but Prologis will use the land as parking for delivery vans, small trucks and passenger cars. They plan to add crossing signals for pedestrians and other traffic safety improvements, according to a spokesperson for the company.
“It’s rare to have the opportunity to reposition such a large parcel of raw land inside of New York City, particularly in a location that is nearly equidistant to all major airports, Manhattan, Queens, Long Island and New Jersey,” JLL (JLL)’s Hall Oster said in a statement. Oster represented National Grid with colleagues Brendan Callahan, Gabrielle Harvey, Ethan Stanton, Jordan Yarboro and Braedon Gait.
The site is also in federally designated “opportunity zone” and has the potential to qualify for an industrial tax abatement, TRD previously reported.
Prologis, a San Francisco-based company, has been active mainly in the California market and other parts of the country, swiftly becoming the nation’s largest real estate investment trust after picking up a 240,000-square-foot property in Commerce, Calif., from The Gehr Group for $50 million in early January.
It has made some purchases around New York City in recent years, picking up a Maspeth, Queens, lot for $51 million in 2020 and dropping $42.7 million for a 68 percent stake in a Ridgewood, Queens, site in 2021.
But possibly one of the company’s biggest windfalls came with the June 2022 merger with Duke Realty in an all-stock transaction valued at approximately $26 billion.
Mark Hallum can be reached at mhallum@commercialobserver.com.
